ECONOMYNEXT – Sri Lankan companies will be able to purchase fuel on a weekly or daily basis if they are able to pay for the commodity in dollars one-month in advance, the Minister of Fuel and Energy Kanchana Wijesekera said as the crisis-hit country scrambles to find dollars to pay for its bills.
From July 12, any company that has the ability to pay for its fuel requirements can open a consumer account at Ceylon Petroleum Corporation to obtain a guaranteed quota.
“They need to pay a month in advance & fuel will be issued on a daily or weekly basis from the 12th (July). Already paid customers will receive their quota from the 12th,” Wijesekera said on Sunday (July 03).
Any Company/Industry that can pay In USD can open a consumer account at CPC to obtain a weekly guaranteed quota. They need to pay a month in advance & fuel will be issued on a daily or weekly basis from the 12th. Already paid customers will receive their quota from the 12th.
— Kanchana Wijesekera (@kanchana_wij) July 3, 2022
Sri Lanka’s fuel stocks have almost run dry while the fuel queues continue to grow.
Previously, the minister said that the country’s money-printing central bank shot down a proposal to allow a few fuel stations to sell petrol in dollars on the grounds that according money regulations dollars cannot be used for internal transactions at retail levels.
However, the minister highlighted that the state-run national carrier SriLankan Airlines and exporters were paying in dollars to CPC to purchase fuel which in fact has helped that raise some dollars.
Some new suppliers had previously asked for upfront payment to supply fuel while foreign banks are refusing to confirm Sri Lanka’s letter of credit.
Suppliers like Petro China used to give Sri Lanka 180 days of credit through LCs, Minister Wijesekera said. (Colombo/Jul03/2022)